A new development impact bond aims to save the lives of as many as 10,000 mothers and newborns in India over five years. But when United States Agency for International Development Administrator Mark Green announced the DIB at the Global Entrepreneurship Summit in Hyderabad, he noted the potential for impact was not only on maternal and child health, but also on USAID’s approach to development.

In response to a question from Devex, he said it reflected how USAID is trying to partner with, rather than merely contract with, the private sector to take on development challenges through a business lens.

"I think the model's a very good one because it truly harnesses the strength and creativity of the private sector, and while this is the first [USAID DIB to launch], I don't believe it will be the last," he said. "In fact, there are a number of innovative financing techniques that we are taking up in many places. It just seemed natural to do the first one here in India, with the vibrancy of the private sector here and [the Global Entrepreneurship Summit] around this theme of empowering women, because that's what I believe this will ultimately achieve."

Read the full article about innovative finance at USAID at Devex International Development.